Startups in the space sector will be able to receive grants of €80,000 through the European Space Agency's business incubator in Latvia, ESA BIC Latvia, as outlined in a new agreement between the incubator and the Central Finance and Contracting Agency (CFCA) for the implementation of the project "Support for the Development of New Technologies at ESA BIC Latvia."
The total project budget amounts to €964,400, of which €819,700 comes from the European Regional Development Fund, and €144,700 from the Latvian state budget. With additional support from the European Space Agency, the total funding for startups amounts to €1.2 million.
Previously, the incubator had ESA-provided funding to support 12 Latvian space companies. Now, with this new agreement, the number of supported companies will increase to 15. Additionally, the grant amount per company has risen to €80,000.
This is the most significant level of support provided by ESA business incubators across Europe - in other member states, the average is around €50,000 per company.
The new funding model anticipates that half of the grant (€40,000) will be provided by the European Regional Development Fund, and the other half by ESA.
Mentoring and Financial Support
Each company accepted into the incubator receives up to two years of support, which includes not only financial assistance but also legal and business consultations, mentorship and expert guidance, access to specialised satellite data and IT systems, and connections to a broad professional network. During the incubation period, companies may also participate in ESA procurement programs.
Applications to ESA BIC Latvia can be submitted at any time; however, companies are admitted to the program twice a year. Applications can be submitted through the incubator's website. Free consultations are also available to help startups prepare their submissions before applying.
In the first call for space startups, seven companies applied; in the second, nine. One company currently accepted into the incubator is NRG Solutions, which uses Earth observation data and geospatial technologies to modernise real estate valuation and assessment, according to Labs of Latvia.
"We are actively looking for new startups with the potential to advance the space economy significantly. We are here to help bold space-related ideas become scalable companies that create value for Latvia and beyond," said ESA BIC Latvia manager Ļevs Lapkis.
Latvia Joins the Elite of the European Space Ecosystem
Last year, with the launch of ESA BIC Latvia, the country officially joined ESA's network of business incubation centres, according to Labs of Latvia. The incubator is run by Commercialisation Reactor, which won the public tender announced by ESA.
"With the launch of ESA BIC Latvia, Latvia becomes part of the elite European space ecosystem. This step grants our startups access to a world-class platform for growth and innovation," said Commercialisation Reactor founder and CEO Nikolajs Adamovičs.
Lapkis emphasised that the centre's mission is to build a sustainable community of space startups, positioning Latvia as a science-driven economy with a strong focus on the space industry.
"We believe this can be achieved through systematic support for globally competitive new companies. You don't have to think immediately about launching rockets or building satellites. The market demands new materials, components, and services for space missions, and the use of satellite data to boost the economy," Lapkis explained.
Space Is Not Just a Trend
Previously, the Ministry of Economics' senior expert on space and innovation policy Angelīna Bekasova stated that participation in this project will lead to the creation of new companies in Latvia that will generate jobs, pay taxes, and export their products and services. Referring to ESA data, she noted that every euro invested in space programs attracts an additional €2.80 in investment, with direct and indirect returns reaching €7.20, of which 49% comes from exports.
"Maybe it seems like space is just a trend, but it's a significant and rapidly growing sector of the economy that will continue to expand. Early support for space industry development- like joining the ESA Business Incubation Network- puts us on the train driving space innovation, instead of being left on the platform watching others pass us by," Bekasova added.
More on the development of the space sector in Latvia can be found in Labs of Latvia's interview with A. Bekasova.
Innovation in Space Knows No Boundaries
ESA's business incubation centres have been in existence for over 20 years, but the opportunity to establish one in Latvia only recently became possible. First, Latvia had to become an associate member of ESA, which happened in 2020. In 2023, following a request from the Ministry of Education and Science and the Ministry of Economics, ESA announced a tender to open a business incubation centre in Latvia. ESA BIC Latvia was officially launched last year and is managed by Commercialisation Reactor.
Currently, there are 32 ESA business incubation centres in 22 countries. Over the past two decades, they have helped develop more than 1,800 startups.
